6th Avenue NYC pizza price war is over…for now
The price war between neighboring pizza joints here in Manhattan is over…for now at least.
We first highlighted the battle here and also here in which two 'pizza-by-the-slice' purveyors located on Sixth Avenue between 37th and 38th Streets were engaged in a downward spiral when it came to pricing pizza by the slice.
On Thursday evening a week ago [late March], Bombay Fast Food/6 Ave. Pizza — unprovoked, and without warning — cut its pizza price to 79 cents. The next morning, 2 Bros. retaliated by moving to 75 cents (its owners felt it was easier to make change from a dollar than at 79 cents). Bombay/6 Ave. matched the 75 cents, and that’s where everything sits.
“We don’t sell pizza at 75 cents,” Eli Halali [owner of 2 Bros. Pizza] said. “But if they think they’re going to sit next to us and sell at 75 cents, they’ve got another think coming.”
For his part, Eli Halali made it clear that 75 cents was a temporary price point. He said he could not make money at that level and eventually would return to $1. He said that if Bombay/6 Ave. Pizza went back to $1, he would as well.
If it didn’t, he said, it better watch out.
When we last looked at the battle six months ago, both Bombay Fast Food / 6th Ave. Pizza and 2 Bros. had each just lowered the price of a slice of cheese pizza to 75 cents and then lowered price of a full pie to $6.00. And in the final gasp of this foolish price war strategy, Bombay Fast Food/6 Ave. Pizza then lowered the price of their full pie to $5.99 – taking advantage of the well-known psychological effect of the .99 cent tail.
The price point for both slices and full pies remained staple until about a week ago when each raised their price to one dollar per slice. In addition, both vendors increased the price of a full cheese pie from $6.00 to $8.00
Like I mentioned before, I’ve been getting a front row seat in all of this for the past six months since I walk past the battling pizzerias each morning and evening when working in Manhattan. Bombay Fast Food/6 Ave. Pizza and 2 Bros. Pizza are both located on the same block – in fact, their storefronts are separated only by a small entrance to a upper floor barbershop; less than eight feet between the two.
While my feeling on price wars are well known, we’ll see how these two vendors react to pricing pressures in the future. I keep you informed…